Larsen and Turbo (L&T) - Stock Updates | Angel One

Daily Market Updates
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As of June 30, 2023, L&T’s order book stood at Rs 4,13,000 crore.

L&T shares surged 1.5% on Thursday, reaching a new 52-week high of Rs 3,057, with trading volume increasing by more than 2.25 times on BSE. The stock is currently trading at Rs 3,021.45 per share, up 0.32% from its previous closing price of Rs 3,011.85 per share.

L&T Construction’s heavy civil infrastructure business unit has secured a major order from the Mumbai Metropolitan Region Development Authority (MMRDA) to design and construct an underground road tunnel project connecting Orange Gate, Eastern Freeway, and Marine Drive Coastal Road in Mumbai. The order is valued at Rs 7,000 crore.

The project scope includes designing and building two road tunnels using tunnel boring machines (TBMs) and connecting them to the existing elevated Eastern Freeway at Orange Gate and to Marine Drive. The tunnel alignment will primarily run under the Sardar Vallabhbhai Patel Road and is expected to be completed within 54 months.

This project marks a significant milestone for L&T Construction, showcasing the company’s capabilities in building faster and more reliable mass transit systems. It is also in alignment with L&T Construction’s strategic goals of expanding its presence in the infrastructure sector and becoming a global leader in the construction industry.

The project is expected to have a positive impact on the Mumbai metropolitan region, reducing traffic congestion, and enhancing connectivity between key areas of the city. Additionally, it will boost the local economy by creating jobs and stimulating demand for goods and services.

In summary, the L&T Construction-MMRDA underground road tunnel project represents a major development that will benefit the Mumbai metropolitan region and the Indian construction industry.

Larsen & Toubro (L&T) is a global engineering and construction company providing EPC solutions in key sectors. The company reported robust financial results for the first quarter of FY24, with net sales increasing by 33.55% and net profit increasing by 39%. As of June 30, 2023, L&T’s order book stands at Rs 4,13,000 crore.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are provided as examples and not as recommendations. The information is based on several secondary sources on the internet and is subject to change. It is advisable to consult an expert before making any related decisions.

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L&T strikes gold again: Lands yet another ultra-mega contract for hydrocarbon business

L&T classifies their order wins into five different categories, with one of them being the “ultra-mega project” category, signifying orders with a value exceeding Rs 15,000 crore.

Larsen & Toubro, a global conglomerate primarily focused on delivering engineering, procurement, and construction (EPC) solutions has made a significant announcement regarding an order win today.

As per the detail in the press release, Larsen & Toubro’s Hydrocarbon Business (LTEH) has received a Letter of Intent for one more significant onshore project in the Middle East from a highly esteemed client. This follows the recent award of an Ultra-Mega project for a Gas Compression plant.

The scope of the project includes the engineering, procurement, and construction of a Gas Processing Plant, which involves the creation of Inlet Separation Facilities, a Booster Compression System, an Amine Gas Recovery Unit, a Dehydration Unit, a Mercury Removal Unit, NGL Recovery Unit, and Sales Gas Compression System within new onshore facilities. This work will also encompass integrating these new facilities with the existing Gas Processing Plants.

Additionally, L&T classifies their order wins into five different categories, with one of them being the “ultra-mega project” category, signifying orders with a value exceeding Rs 15,000 crore. Interestingly, according to the press release, the company has specifically referred to this order as an “ultra-mega project.”

With enthusiasm over the ultra-mega order win, L&T Chairman & Managing Director, Subrahmanyan, stated, "This is a substantial order that will not only strengthen our balance sheet but also provide impetus to our demonstrated credentials in the Hydrocarbon EPC space. We are proud of our LTEH team”.

Shifting the focus to the company’s stock performance, at the start of the day, the stock began trading at Rs 2,949.75 per share, representing an approximate 1% increase from the prior day’s closing price of Rs 2,929 per share on the BSE. At the time of writing this article, the stock is currently trading at Rs 2,915 per share. Additionally, the stocks have given a return of 44% in the last one year and a multibagger return of 213% over the last three years.

Larsen & Toubro Ltd is a global conglomerate primarily dedicated to delivering engineering, procurement, and construction (EPC) solutions across crucial sectors, including Infrastructure, Hydrocarbon, Power, Process Industries, Defence, Information Technology, and Financial Services, in both domestic and international markets.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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Larsen and Toubro wins contract for Bhogapuram International Airport construction; stock rises

L&T classifies its order wins into five different categories, one of which is the Large project category, indicating orders with a value ranging between Rs 2,500 crore to Rs 5,000 crore.

Larsen & Toubro (L&T) Construction, one of India’s leading infrastructure development companies, has added another feather to its cap by securing a prestigious project from the GMR Visakhapatnam International Airport Limited.

The project entails the Engineering, Procurement, and Construction of the Bhogapuram International Airport in Andhra Pradesh, a greenfield airport with the capacity to handle millions of passengers annually. This development underscores L&T’s prowess in delivering comprehensive airport projects and highlights the trust and satisfaction they’ve earned from their clients.

The project’s initial phase will be designed to cater to a capacity of 6 million passengers per annum (MPA) and can subsequently be expanded to accommodate up to 12 MPA.

The primary development tasks encompass a wide range of activities, such as excavation and land preparation, construction of airport terminals equipped with necessary systems, installation of an Air Traffic Control (ATC) tower, airfield development including a 3800-meter-long South Runway, apron, taxiways, airfield ground lighting, fuel hydrant systems, and additional facilities, creation of landside amenities including roads and landscaping, and the establishment of utilities and support infrastructure.

At present, Larsen & Toubro is actively engaged in the construction of major airports in prominent Indian cities such as Delhi, Hyderabad, Bangalore, Chennai, and Navi Mumbai. This new contract serves as a significant endorsement of L&T’s ability to comprehensively manage the development of greenfield airports, further solidifying the company’s expertise in Engineering, Procurement, and Construction (EPC) capabilities. Moreover, it underscores the trust and satisfaction that clients like GMR have consistently placed in L&T, as evidenced by this repeat order.

Furthermore, L&T classifies their order wins into five different categories, one of which is the “Large” category, denoting orders with a value ranging between Rs 2,500 to Rs 5,000 crore. What’s intriguing, as stated in the press release, is that the company has explicitly labelled this order as a "Large” contract.

Following the announcement, the company’s stocks are trading higher than the previous day’s closing price. At the beginning of the day, the stock opened at Rs 2,944.95 per share and reached intraday highs and lows of Rs 2,973.90 and 2,928.75, respectively. As of the time of writing this article, it is trading at Rs 2,972.25 per share on the BSE.

The current market capitalisation of the company stands at Rs 4,17,794 crore. Additionally, the stock has delivered an impressive return of 47% over the past year, making it an attractive option for investors.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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L&T Technology partners with NVIDIA to develop next-generation medical devices

The collaboration leverages the NVIDIA Holoscan and NVIDIA IGX Orin platforms, featuring ultra-low latency in data transfer, superior image processing, and scalability to support multiple AI-enabled applications.

L&T Technology Services Limited (LTTS), a leading global pure-play engineering services company, has announced a collaboration with NVIDIA to develop software-defined architectures for medical devices focused on endoscopy. This innovative solution will enhance the image quality and scalability of medical devices, addressing the industry-wide challenges of availability, cost, and dependencies linked to custom and proprietary hardware components.

This will ensure enhanced visualization for image processing and AI-based decision-making support, such as for polyp detection and classification.

“The combination of LTTS’ expertise in medical-device development and NVIDIA’s full-stack edge AI computing platform delivers unprecedented value to the medical technology industry by accelerating the development of AI-enabled, software-defined medical devices,” said Shanker Trivedi, Senior Vice President of Enterprise Business at NVIDIA. “This collaboration provides a complete solution for customers looking to transition to a software-defined business model via real-time AI applications.”

“Our collaboration with NVIDIA helps us push the boundaries of what’s possible in medical imaging,” said Amit Chadha, CEO and Managing Director of L&T Technology Services. “The combination of the NVIDIA Holoscan software platform for edge AI inference and the NVIDIA IGX Orin hardware platform accelerates the development of AI-powered medical imaging solutions by enhancing image quality and real-time clinical decision-making support, making clinicians more efficient and improving patient outcomes,” he added.

This collaboration is a significant step forward in the development of next-generation medical devices that are more efficient, accurate, and effective.

L&T Technology Services (LTTS) delivered a strong Q2 with revenue growth of 3.2% sequentially in constant currency and an EBIT margin of 17.1%. The company’s performance was driven by healthy growth across all segments, strong deal wins, and continued investments in innovation.

Q2FY2024 Highlights

  • The financial results for the second quarter of 2023 exhibit a commendable performance, reflecting robust growth and financial resilience. Sales experienced a noteworthy uptick, demonstrating a 5% year-on-year (YOY) increase, reaching Rs 2,386 Crore.
  • The EBIDT displayed a robust increase of 9% YOY, reaching Rs 476 Crore, a significant improvement from the Rs 437 Crore recorded in September 2022. This reflects the company’s efficiency in managing operational costs and optimizing profitability.
  • Net profit also showcased a positive trajectory, marking a 5% YOY growth and reaching Rs 316 Crore.

Concall Analysis

  1. Transportation: Good quarter with growth in all sub-segments. Investing in software-defined vehicles (SDV) and partnering with chip majors.
  2. Plant Engineering: Strong quarter with broad-based growth. O&G customers investing in low-carbon energy and renewables.
  3. Industrial Products: Slightly softer growth, driven by digital manufacturing and AI adoption.
  4. Telecom & Hi-tech: 2% sequential growth, despite challenges in Semiconductors. Strong growth in Nex Gen Comms and Sustainable Smart World space.
  5. Medical: Improved growth momentum with traction in large deals. Increasing demand for digital solutions and cyber security.

L&T Technology Services (LTTS) has closed several multi-million dollar projects from global customers across segments, including a partnership with a global oilfield services provider for digital transformation, collaboration with a healthcare technology provider for part-to-print verification, and winning a long-term partnership with a leading global technology conglomerate for Aerospace R&D initiatives.

As LTTS continues to register strong financials, strategic deal wins, and a proactive approach to technological innovation, the partnership with NVIDIA positions them as leaders in the evolution of AI-enabled, software-defined medical devices. This collaboration not only addresses current industry challenges but also reflects a commitment to driving future advancements in the medical technology landscape.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.